This change will be applied to all cases with a first Decision in Principle (DIP) on or after 2 December, as well as cases which are reprocessed following an initial DIP decision.

In April this year, Nationwide returned to allowing bonus, overtime and commission income to be included as part of the mortgage affordability calculation.

Nationwide will be changing the way bonus, overtime and commission is assessed, which increases the amount that can be used in the affordability assessment. This comes into effect from tomorrow.

Mike Pitcher, media relations manager, said: “In regards to fixed term contracts for bonus, overtime and commissions, we have moved from taking into account the lowest amount over the last three pay slips to taking an average amount of this sum over the last three pay slips.

“On fixed term contracts, we’ve tweaked the criteria to now take into account a bigger proportion of that income when we’re assessing a borrower’s affordability.”

Henry Jordan, director of mortgages at Nationwide, said: “As a responsible lender, we always ensure that borrowers can afford their mortgage payments both now and in the future.

“These latest enhancements to our affordability criteria mean we are well placed to support more people to purchase their property as well as those looking for additional borrowing.”

In its new business range, the lender has increased rates for five-year fixes of between 60 and 85 per cent loan to value by around 0.15 per cent. This includes fee-free, £999 fee and £1,499 fee options.

The largest increase was a five-year fixed rate at 75 per cent LTV which went up by 01.5 per cent to 1.44 per cent. It is subject to a £1,499 fee.

For first-time buyers, rates have improved by up to 0.2 per cent for five-year fixed rates between 60 and 85 per cent LTV. This also includes fee-paying and fee-free options.

Five-year fixed rate remortgages have gone up by around 0.15 per cent between the same LTVs, including a five-year fixed rate at 80 per cent LTV which was 1.69 per cent and is now 1.84 per cent. It has a £999 fee.

The lender is also upping its shared equity five-year fixed rates by around 0.1 per cent between 60 and 75 per cent LTV. Its five-year fixed rate at 60 per cent LTV is priced at 1.49 per cent, and at 75 per cent LTV the rate is now 1.55 per cent and both come with a £999 fee.

For the lender’s existing members moving home, rates have increased by around 0.15 per cent up to 85 per cent LTV.

Its switcher and additional borrowing rates for two, three and five-year fixed rates between 60 and 75 per cent LTV have also been upped by around 0.15 per cent.

Henry Jordan, Nationwide’s director of mortgages, said: “We regularly review the rates we offer across our mortgage range in line with market conditions. As swap rates continue to edge upwards, we have seen rates rise across the market.

“We know many borrowers prefer the payment certainty that a fixed rate deal offers and despite these increases, rates remain low in historic terms.”

The society is also reintroducing tracker mortgages for existing customers moving home, in need of additional borrowing, those who are switching and those using shared equity schemes with rates starting from 0.79 per cent.

Nationwide’s first-time buyer tracker mortgages also come with £500 cashback, while those looking to remortgage to the mutual can choose between £500 cashback or free standard legal fees.

The rates for new customers moving home include a two-year tracker rate at 60 per cent LTV launched at 0.79 per cent. There is also a two-year tracker rate at 75 per cent LTV launched at 0.84 per cent and a two-year tracker rate at 90 per cent LTV launched at 1.29 per cent. All have a £1,499 fee.

In regards to remortgagors, there is a two-year tracker rate at 60 per cent LTV launched at 0.89 per cent, with a £1,499 fee and two-year tracker rate at 75 per cent LTV at 1.04 per cent, with a £999 fee. There is also a two-year tracker rate at 85 per cent LTV launched at 1.16 per cent, with a £999 fee.

Henry Jordan, director of mortgages, said: “By pricing our trackers 0.40 per cent below equivalent fixed rates we can ensure they are not only competitive at the current time, but that they remain competitive should bank rate increase in the near future.”

The changes come into effect from tomorrow.

This includes its two-year fixed rate house purchase product at 60 per cent LTV, which has gone up by 0.05 per cent to 0.99 per cent. It is subject to a £1,499 fee.

Its three-year fixed rate at 60 per cent LTV has increased by 0.05 per cent to 1.04 per cent. It has a fee of £999.

The lender has also upped the rate for its five-year fixed rate at 75 per cent LTV from 1.14 per cent to 1.19 per cent. It comes with a £1,499 fee.

The same changes also apply to existing borrowers who are moving home, switching rates or seeking further finance.

Henry Jordan, Nationwide’s director or mortgages, said: “We regularly review the rates we offer across our mortgage range. As swap rates continue to rise we have seen fixed rates start to trend back upwards and these new rates follow similar changes made across the mortgage market over recent weeks.”

Borrowers using the scheme will have access to the lender’s range of 95 per cent LTV mortgages, which start from 2.89 per cent, and can be used to buy a house or flat.

The Deposit Unlock scheme is a mortgage indemnity scheme, developed by the Home Builders Federation and insurance broker Gallagher Re, and aims to help borrowers secure a new build property with small deposits.

The scheme will be available for over 1,000 new build sites across England, Scotland and Wales, and will then expand to include more Housing Building Federation and Homes for Scotland members.

Both first-time buyers and second stepper borrowers can access new build loans of between £25,000 and £750,000 as part of the scheme.

Borrowers will also be able to access the Society’s Green Reward if a property has a Standard Assessment Procedure rating of 86 plus or an Energy Performance Certificate of B or higher. It offers cashback worth between £250 and £500 depending on the rating.

Newcastle Building Society launched its first 95 per cent LTV mortgages as part of the scheme earlier this year. This includes a two-year fixed rate at 3.5 per cent and a five-year fixed rate priced at 3.75 per cent.

Henry Jordan, Nationwide Building Society’s mortgages director, said that the need for more new homes has never been more apparent and the scheme would be a “long-term alternative” to the Help to Buy scheme.

He said: “During the pandemic we spent much more time in our homes and for many of us it highlighted the need for a more suitable property. Many people are looking for a home that is energy efficient as climate change becomes a priority and energy bills continue to rise.

“Our homes are where we have one of the biggest individual impacts on climate change and we remain committed to helping make the homes we lend on greener and more sustainable, which is why we continue to reward those who buy the most energy efficient properties with cashback offer under our Green Reward scheme.”

Steven Rance, Gallagher Re’s managing partner of mortgage indemnity reinsurance, said: “We are delighted to welcome Britain’s biggest building society as the first major lender to go live with the house builder-owned scheme, massively extending its reach to help low-deposit buyers right across England, Scotland and Wales realise their dream of home ownership.

“Deposit Unlock demonstrates cross-industry collaboration at its best, with house builders, lenders and the insurance industry coming together for the common good.”

Rates on first-time buyer deals are being chopped by up to 0.10 per cent across two‒ and three-year fixed rates, available up to 75 per cent, 80 per cent and 95 per cent loan-to-value. For example, the new range includes a two-year fixed rate at 95 per cent LTV at 2.89 per cent, with a £999 fee.

For homemovers, rates across two‒ and three-year deals have been reduced by up to 0.16 per cent, while reductions of up to 0.12 per cent on two‒ and three-year fixed remortgage deals are also taking place. As a result the remortgage range now includes a two-year fixed rate at 80 per cent LTV at 1.47 per cent with a £999 fee.

In addition, Nationwide is revamping its shared equity range, with rates dropping by up to 0.35 percentage points on two‒ and five-year fixed rates between 60 and 80 per cent LTV. Rates now start at 1.09 per cent for two-year deals and 1.24 per cent for five-year fixed rates.

The mutual has also announced rate cuts of up to 0.17 per cent on selected further advance, family deposit mortgage and switcher rates between 60 per cent and 95 per cent LTV.

Henry Jordan (pictured), director of mortgages at Nationwide, emphasised that the lender regularly reviews its rates to ensure it remains one of the most competitive around for all types of borrowers.

He continued: “These latest cuts and the introduction of market-leading rates on our shared equity range show we are doing all we can to support people as they look at all the options available to get into a home of their own.”

The largest cuts were applied to its first-time buyer range, with its two-year fixed rate at 85 per cent LTV going down by 0.17 per cent to 1.62 per cent. It comes with a £1,499 fee.

Its two-year fixed rate at 95 per cent LTV, also with a £1,499 fee, has been reduced by 0.05 per cent to 2.94 per cent, whilst its three-year fixed rate at 90 per cent LTV with a £999 fee has gone down by 0.1 per cent to 2.02 per cent.

For new customers moving home, the lender has cut rates by up to 0.11 per cent, including its two-year fixed rate at 85 per cent LTV, which has decreased by 0.05 per cent to 1.57 per cent.

Its three-year fixed rate at 90 per cent LTV has also fallen by 0.1 per cent to 1.94 per cent. Both come with a £1,499 fee.

Its two-year fixed rate at 95 per cent LTV has decreased by 0.1 per cent to 1.94 per cent. It is subject to a £999 fee.

Nationwide is also cutting rates by up to 0.11 per cent for existing members moving home for two and three-year fixed rates products between 75 per cent and 95 per cent LTV.

In addition, rate cuts of 0.11 per cent are being applied to some further advance, family deposit mortgage and switcher rates.

Henry Jordan, Nationwide’s director of mortgages, said: “By improving the competitiveness of our two and three-year fixed rate products, we are aiming to support those mortgage customers with smaller deposits who are looking for payment security.”

In its first-time buyer range its two and five-year fixed rate at 95 per cent loan to value (LTV) have been cut by 0.2 per cent and 0.15 per cent respectively to 3.39 per cent. The five-year fixed rate comes with a £999 fee.

Its two-year fixed rate at 90 per cent LTV has fallen by 0.2 per cent to 2.24 per cent. It also comes with a £999 fee.

For new customers moving home, rates have been reduced by up to 0.2 per cent between 80 per cent and 95 per cent LTV.

Its two-year fixed rate at 90 per cent LTV has been cut by 0.16 per cent to 2.18 per cent, and its five-year fixed rate has decreased by 0.15 per cent to 2.79 per cent.

At 95 per cent LTV, the five-year fixed rate has gone down by 0.2 per cent to 3.39 per cent. All deals are subject to a £999 fee.

On the remortgage side, its five-year fixed rate at 85 per cent LTV has been cut from 0.2 per cent to 2.34 per cent, and its two-year fixed rate has fallen by 0.15 per cent to 2.29 per cent.

The lender is also reducing rates by up to 0.34 per cent for homebuyers and first-time buyers using shared equity, with rates now starting from 1.2 per cent for two-year fixed rates and 1.3 per cent for five-year fixed rates.

Henry Jordan, Nationwide’s mortgages director, said: “Nationwide remains as committed as ever to helping people move into their first home or onto their next. We are making these rate cuts to ensure we continue to be one of the most competitive lenders around at a time when demand remains high.”

The product has a rate of 0.99 per cent and is available from tomorrow at 60 per cent loan to value (LTV). It is eligible for customers moving home and remortgaging and has a product fee of £1,499.

The lender is also bringing in a range of three-year fixed rate products, with rates starting from 0.94 per cent, between 60 and 95 per cent LTV.

Nationwide’s mortgages director Henry Jordan (pictured) said that the sub-one per cent five-year fixed deal would give customers greater certainty over payments for a longer period.

The three-year fixed rate products can be fee-free or with a £999 fee and are available for first-time buyers, remortgaging, new customers and existing customers moving home.

Nationwide has made a range of reductions across its first-time buyer, new customers moving home and remortgage range of up to 0.4 per cent.

In its first-time buyer range, its two-year fixed rate at 90 per cent LTV has been cut by 0.35 per cent to 2.44 per cent, and at 85 per cent LTV has been reduced by 0.24 per cent to 3.35 per cent. Both products have a £999 fee.

Its fee-free 90 per cent LTV two-year fixed rate product has fallen by 0.3 per cent to 2.74 per cent.

For new customers moving house its two-year fixed rate at 90 per cent LTV has decreased from 0.35 per cent to 2.34 per cent, whereas at 95 per cent LTV it has gone down from 0.19 per cent to 3.35 per cent. Both products are subject to a £999 fee.

Its fee-fee two-year fixed rate at 90 per cent LTV has gone from 2.99 per cent to 2.59 per cent.

On the remortgage side its five-year fixed rate at 75 per cent LTV has been cut from 0.2 per cent to 1.29 per cent and its two-year fixed rate product at 85 per cent LTV has reduced from 2.29 per cent to 1.99 per cent.

The lender has also confirmed that it will cut rates by up to 0.3 per cent for existing members moving home on products up to 90 per cent LTV, and it will reduce rates on further advance, family deposit mortgage and switcher rates by up to 0.8 per cent.

Jordan said: “The significant reductions we’re making across a wide range of our mortgages demonstrates our ongoing support for all types of borrowers and, by expanding our range with the launch of new three-year products, we are also giving them even more choice when they come to make that decision on how long to fix that mortgage rate.”

Brokers told Mortgage Solutions the introduction of the sub-one per cent products was another sign that the market was becoming increasingly competitive, and that further sub-one per cent deals would follow.

L&C Mortgages associate director for communications David Hollingworth said: “If brokers needed any reminding of how competitive the market is right now Nationwide has brought already sharp rates to a new historic low with the introduction of a five-year fix at 0.99 per cent.”

“With a minimum loan in operation and a bigger fee it won’t necessarily work for everybody but sends a positive signal to borrowers that they should be making the most of these rates with options available on two, three and five-year fixes now starting below one per cent,” he added.

SPF Private Clients chief executive of mortgage broker Mark Harris said: “Just when it looked as though mortgage rates couldn’t possibly go any lower, they have. While there has been a flurry of sub-one per cent two-year fixes in recent weeks, this is the first five-year fix pegged at such a low rate.”

He said that by bringing in this product Nationwide has “done the double” as it now had the two cheapest two and five-year fixed rate products on the market.

He noted: “As lenders are cash-rich and eager for business, we wouldn’t bet against others following suit and offering similarly cheap products in coming weeks.”

The cuts to the long-term fixes have been made across the 60 per cent loan to value (LTV) tier for first-time buyer, home mover and remortgaging borrowers. These represent reductions of 0.35 per cent for home movers and first-time buyers and a cut of 0.15 per cent for remortgagors. 

All products have a £999 fee. 

The mutual’s two-year tracker mortgage at 60 per cent LTV for home movers and first-time buyers has also received a 0.25 per cent reduction to 1.39 per cent. This mortgage has a £999 fee. 

Other deals have seen reductions, such as the two-year fixed rate at 75 per cent LTV for home movers and first-time buyers which now has a rate of 1.14 per cent from 1.19 per cent. This has a fee of £1,499. 

The five-year fixed equivalent for homemovers at 85 per cent LTV now has a rate of 2.49 per cent, previously 2.59 per cent. For first-time buyers, the corresponding option has been cut from 2.64 per cent to 2.54 per cent. 

Two and five-year fixed remortgages with a £999 fee have also been reduced by up to 15 basis points. 

Henry Jordan, Nationwide’s director of mortgages, said: “As one of the largest lenders in the UK we always keep our rates under review to ensure we can maintain our competitive position in the market. 

“Whether someone is buying a new home or remortgaging their existing property we have a range of mortgages on offer to suit their needs.”